1. Southeast and Mid-Atlantic Challenges to Wind Development The Southeast & Mid-Atlantic Regional Wind Summit, Raleigh, NC September 19, 2005 © 2005 Community Energy, Inc.

2. Summary Community Energy, Inc. (CEI) Background The Economics of Wind The Wind Market Our 2005 Projects and Development Challenges © 2003 Community Energy, Inc.© 2005 Community Energy, Inc.

3. Founded in 1999, with headquarters in Wayne, PA and offices in NYC, Binghamton, Chicago, Connecticut, New Jersey and Colorado 37 employees Marketing/Sales Division - Over 2 Billion kWh of wind under contract (supporting 200 MW of wind) -100% Growth Rate over past 3 years -20-year PPAs with Exelon CEI Overview Supply Development Division - Long-term PPAs with PPL, ComEd, & ACUA - 350,000 MWh under contract - Over 200 MW of new CEI developments (PA, NJ, MA, IL) under long-term PPA’s © 2005 Community Energy, Inc.

4. Business Model Marketer DeveloperSupplier 20 utility partners 40,000 residential & business customers Pioneered sales to C&I customers EPA Green Power Leadership Award Winner 2001-2004 350,000 MWh under contract RPS Portfolio Management RECs Wind Solar Landfill Gas/ biomass Small hydro > 1500 MW wind farms under development Developing the only 2 wind projects in Mid-Atlantic this year Land under lease in more than 12 states © 2005 Community Energy, Inc.

5. The Vision A world powered by clean, responsibly developed renewable energy The Model Linking customer purchases with the development of new regional wind supply to flip economics in positive direction © 2005 Community Energy, Inc.

6. Value of Wind Energy (in PJM): + $40-45/MWh Cost of Wind Energy (in PJM): - $55-60/MWh NET ECONOMIC IMPACT - $10-20/MWh Green Market Premium + $15-25/MWh REVISED ECONOMIC IMPACT - $5 to +$15/MWh The Economics of Wind © 2005 Community Energy, Inc.

7. Large Wind Buyers © 2005 Community Energy, Inc.

9. The Wind Farms 242 MW Wethersfield, NY 6.6MW on-line 2000 Somerset, PA 15MW on-line 2001 Mill Run, PA 9MW on-line 2001 Fenner, NY 30MW on-line 2001 Mountaineer, WV 66MW on-line 2002 Waymart, PA 64.5MW on-line 2003 Crescent Ridge, IL 51MW on-line 2005 Under development: Atlantic City, NJ 7.5MW Fall 2005 Bear Creek, PA 24MW Fall 2005 Princeton, MA 3MW 2006 Lempster, NH 24MW 2006 Jordanville, NY 150MW 2007 Wind Supply © 2005 Community Energy, Inc.

10. Deal Structure Wind Farm Wholesaler (e.g., Exelon PPL, Enel, CEI, etc.) ISO (PJM) Bankable PPA Wind kWh (with RECs) Wholesale Energy Locational Marginal Price RECs Premiums REC Customers © 2005 Community Energy, Inc.

11. A Key Piece of the Puzzle: Long-Term Creditworthy REC Purchases The University of Pennsylvania - Original 5 year, 20,000 MWh/yr. purchase in 2001 supported new PA projects - Last year doubled to 10-year, 40,000 MWh/Yr. purchase - Term & credit behind commitment will directly support PA project in 2005 © 2005 Community Energy, Inc.

12. CEI 2005 Projects 7.5-MW Jersey-Atlantic Project Atlantic City, NJ On-Line Late 2005 24-MW Bear Creek Project Bear Creek, PA On-Line Late 2005 © 2005 Community Energy, Inc.

13. - Clean energy showcase visible to 30 million people per year - Leadership by the Atlantic County Utility Authority - 5 GE Turbines, 7.5 MW capacity, 15,000 - 20,000 MWh/Yr. - Partially behind the meter (BTM) to ACUA, balance is merchant power delivered to PJM - NJ BPU providing grant support to offset costs Atlantic City Wind Farm © 2005 Community Energy, Inc.

14. Visible from the Pennsylvania turnpike 12 Gamesa Turbines, 24 MW capacity, ~70,000 MWh/Yr. 20-year Power Purchase Agreement with PPL Central Hudson Group and Babcock and Brown Bear Creek Wind Farm © 2005 Community Energy, Inc.

15. Development Aspects Road design FAA Permits Foundation design Avian studies Other general topics © 2005 Community Energy, Inc.

16. Road Design – Bear Creek Heavy loads during brief construction period Pickup truck usage 20 years post-construction Erosion and sediment control Discharges to streams © 2005 Community Energy, Inc.

17. FAA Permits – Bear Creek Micrositing is a necessary component of every wind project Every adjustment establishes a new “obstruction record” Process streamlining is underway at FAA CEI received excellent support from FAA to resolve possible last minute conflicts © 2005 Community Energy, Inc.

18. Foundation Design - ACUA Design for hurricanes need to be considered –Foundation effect –Turbine effect © 2005 Community Energy, Inc.

19. Avian – Bear Creek and ACUA Misconceptions Pre-construction studies done at both sites NJ Audubon/CEI cooperating on advanced post-construction avian studies PA Game Commission/CEI performing post- construction avian and bat studies © 2005 Community Energy, Inc.

20. General Challenges Turbine size increase = transport vehicle size increase Land use compatibility –ACUA – co-located with County Sewage Treatment Plant – existing brownfield site designed for utility use Role of community leaders © 2005 Community Energy, Inc.

21. Contact Information : Matt Heck Community Energy, Inc. 150 Strafford Avenue, Suite 210 Wayne, PA 19087 484.654.1077 matt.heck@newwindenergy.com www.CommunityEnergy.biz © 2005 Community Energy, Inc.